Context
Odisha State Data Centre Policy 2022 of the Government of Odisha attempts to put in place a conducive environment for accelerated investment in Data Centre projects through strategic initiatives, concessions, and facilitation so that Odisha could capitalize on the growth opportunities in the IT/ITeS/ESDM sector and eventually emerge as the “Data Centre Hub” in the country.
The data centre industry sprouted in the State around 2010, housing captives as well as commercial data centres like STPI, Bharti-Airtel, OPTCL, Odisha State Data Centre and NIC’s National Data Centre. Government of Odisha wishes to tap into this expected growth and attract investments into the State and providing them with an attractive business environment.
The policy shall act as a catalyst in the economic growth of Odisha creating models targeting at the IT/ITeS/ESDM sector, resulting in young talent pool of the State to acquire higher degree of employment skills in the emerging technologies such as Internet of Things, Cloud Computing, Artificial Intelligence, Blockchain.
Objective
- Develop Odisha into a major “Data centre Hub” by 2025
- To attract investors and make Odisha the destination of choice in the sector
- Create enabling and supporting ecosystem that facilitate at least five medium to large scale data centre in next five years
- To make available world class infrastructure with emphasis on promotion of Green IT & ITeS
- To provide IT/ITeS companies with the best business climate
- Create a robust institutional framework for effective implementation, monitoring, and evaluation of this policy
Strategies
- The Policy aims at creating a favorable climate for investments in the Data Centre Sector, both domestic investments and Foreign Direct Investments, and incentivizing the growth of a robust and sustainable Data Centre sector in the state
- Enabling a favorable ecosystem for the operations of Data Centres
- Provide industry-grade skill up gradation and training to the students to suit the requirements of industry and for obtaining gainful employment.
- Support Research & Development, Innovation and Entrepreneurship in IT/ ITeS Sector to take the advantage of the Data Centres set up
- Odisha will work with Department of Telecommunications (DoT) to facilitate robust and cost-effective connectivity backhaul
- Encouraging usage of various emerging technologies such as Augmented Reality, Virtual Reality, Artificial Intelligence, Internet of Things, Machine Learning, Animation, Gaming, Robotics and cloud computing etc. through appropriate policy interventions in IT and ESDM sector
Ease of Doing Business
- Single window clearance system with a clear timeline for project approvals and guidance
- Online system for submission of application forms for various clearances and tracking of the application
- An Apex Committee chaired by secretary, E&IT Department will be formed to monitor the policy implementation and for approval of incentives.
- Odisha Computer Application Centre (OCAC) under E&IT department would be the nodal agency for implementation of this policy.
- The Odisha Computer Application Centre (OCAC) will be responsible for monitoring the progress of various activities under this policy.
Policy incentives
Establishing Data Centre Units
| Sl# |
Incentive Name |
Incentive Particulars as per Odisha Data Centre Policy 2022 |
| 1 |
Land Incentives |
- Land Subsidy: Land at concessional rates by IDCO as per IPR Policy
- Stamp Duty: 100% exemption on first transaction and 50% exemption on second transaction
- Conversion Charges: 100% reimbursement to be payable for converting land from agricultural use to industrial use
- Building Fees Subsidy: Up to 50% reimbursement subject to a maximum limit of Rs 2 lakhs per unit
|
| 2 |
Capital Subsidy |
- 20% of Fixed Capital Investment (FCI) (excluding land) subject to a maximum limit of Rs 25 crores per Data Centre Unit
|
| 3 |
Power Incentives |
- Electricity Duty and Electrical Inspection Fee: 100% exemption for 10 years up to a contract demand of 5 MVA
- Energy generated by standby Diesel Generator sets up to Contract demand will be exempted from electricity duty
- Power Bill Subsidy: 30% on power bill for 5 years, from the date of commencement of commercial operations subject to a maximum limit of Rs 2 crores
- Energy Audit: 75% reimbursement of cost of Energy Audit subject to a maximum limit of Rs 2 lakhs
- Transmission and Wheeling Charges: 100% reimbursement for consumption from captive renewable plant setup in the state
|
| 4 |
SGST Reimbursement |
- 100% reimbursement of Net SGST for 7 years, subject to a maximum limit of 100% of Fixed Capital Investment (excluding land and building cost)
|
| 5 |
Skilling Incentives |
- Recruitment Assistance: Rs 8,000 – 10,000 per newly recruited employee for 3 years subject to a maximum limit of Rs 30 lakhs per unit
- Skill Gap Training Assistance:
- Overseas: 50%-100% up to Rs 20,000 per employee subject to a maximum limit of Rs 30 lakhs per unit
- Domestic: 50%-100% up to Rs 10,000 per employee subject to a maximum limit of Rs 30 lakhs per unit
- Skill Certifications: 50% fee reimbursement subject to a maximum limit of Rs 3 lakhs per year per unit
- Building a Skilled Resource Base: 50% – 100% reimbursement of stipend paid per intern subject to a maximum limit of 10 interns.
|
| 6 |
EPF / ESI Reimbursement |
- Reimbursement of employer contribution on account of ESI/EPF will be provided for 5 years at 50% for direct employees on payroll
- 100% reimbursement will be done for Odisha domicile employees on the direct payroll of the company
|
| 7 |
Internet Bandwidth Subsidy |
- Reimbursement of 25% for 3 years subject to a maximum limit of Rs 25 lakhs per unit
|
| 8 |
Clean/ Green Production Measures |
- 25% subsidy on cleaner / greener initiatives/production measures subject to a maximum limit of Rs 1 crore
- Reimbursement will be done by the accredited certifying agencies, Odisha State Pollution Control Board, etc.
|
| 9 |
Tailor made packages |
- For mega projects, or for projects of strategic importance, customized package of incentives can be offered by the State Government.
|
| 10 |
Non-Fiscal Incentives |
- Exemption from the provisions of chapter VI of factories Act 1948 (working hours for adults) as per the IPR 2015.
- The Data Centre units shall be exempted from the purview of section 9, 10, 11 and 23 of Odisha Shops and Commercial Establishment Act-1956.
- The Data Centre units shall be declared as public utility services for the purpose of applications of provisions under Chapter V of the I.D Act 1947 as per IPR 2015 and subsequent notifications to be issued by Labour & ESI Department, Govt of Odisha from time to time.
- General permission for three shift operations with women working in the night for Data Centre units is granted subject to the provision that the Data Centre unit(s) shall self- certify the precautions being taken in respect of safety and security of employees.
|
Establishing Data Centre Park
| Sl# |
Incentive Name |
Incentive Particulars as per Odisha Data Centre Policy 2022 |
| 1 |
Land Incentives |
Land at concessional rates as per IPR Policy |
| 2 |
Stamp Duty |
100% exemption on first transaction |
| 3 |
Land Conversion Charges |
100% reimbursement to be payable for converting land from agricultural use to industrial use |
| 4 |
Electricity Duty |
100% reimbursement of electricity duty for 5 years |
| 5 |
Infrastructure Development Subsidy |
25% of Fixed Capital Investment (FCI) (building & State-of-the art infrastructure with all basic amenities such as internal roads, water, power, and other common facilities, excluding cost of land) subject to a maximum limit of Rs 10 crores |
| 6 |
Interest Subsidy |
5% per annum of term loan from Banks/Financial Institutions for 7 years subject to a maximum limit of Rs 25 crores. |
| 7 |
Anchor Units |
Anchor units developing the park will be eligible for data centre units incentives as well over and above the above-mentioned incentives. Such incentives will be given to only first two anchor units |
